Mutual funds that invest in fixed income securities like bonds and government treasury bills (T-Bills) are known as debt funds. Monthly Income Plans (MIPs), Fixed Maturity Plans() (FMPs) and Short Term Plans (STPs) are some of the investment options in debt mutual funds. br Some benefits of investing in Debt funds are: br High Degree of Liquidity br Better Returns after Tax br Comparable Credit Risk br Debt funds() are professionally managed funds. This video will give you a basic meaning of debt funds.